Set off of losses
This query is : Resolved
23 November 2013
For return yet to be filed of AY 11-12 & AY 2012-13.
Can the interest paid on borrowed capital be setoff against the income from business in the respective years.
I know that carry forward is not possible,since it is belated returns.
But whether setting off of respective years interest with the same year's business income possible ??
Please Advice !!
Can the interest paid on borrowed capital be setoff against the income from business in the respective years.
I know that carry forward is not possible,since it is belated returns.
But whether setting off of respective years interest with the same year's business income possible ??
Please Advice !!
24 November 2013
Dear Friend, interest paid on borrowed capital is anyways a business expense and shall be covered by the P&L account.
As such, yes set-off within the year shall be permissible even if the return is belated one.
As such, yes set-off within the year shall be permissible even if the return is belated one.
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25 November 2013
Thank you very much Nikhil Sir.
I forgot to mention that the Interest on borrowed capital is in respect of Hosing Loan & not for business purpose.
Thank you for the reply :)
I forgot to mention that the Interest on borrowed capital is in respect of Hosing Loan & not for business purpose.
Thank you for the reply :)
25 November 2013
if he has loss from house property income, he can set off against the business profits of the same year. however, if he carry forward loss from house property, the same can be set off against only income from house property in subsequent years.
25 November 2013
yeah, Setoff against the same year is good!!
thanks very much for the info :)
thanks very much for the info :)
25 November 2013
you are welcome
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